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financial sector experts It is believed that the Reserve Bank of India (RBI), which is on the trend of increasing the policy interest rate, may increase the repo rate by another 0.25 percent in the next monetary review proposed in April. HDFC Bank Chief Economist Abheek Barua said a 0.25 per cent hike in the repo rate is expected during the April policy review as the RBI looks to maintain its stance of containing core inflation. Baruah said, for the next few months, despite moderate overall inflation, core inflation may persist and RBI may increase the policy rate repo by 0.25 percent to control the same.
Repo rate hiked for the sixth time in a row
On Wednesday, the RBI increased the repo rate by another 0.25 percent to 6.50 percent. Suman Chaudhary, Chief Analysis Officer, Acute Ratings, also believes that there are no signs of stopping the increase in the policy rate repo. Although Sunil Sinha, chief economist of India Ratings, said that RBI will not increase the policy rate repo now but will not think of reducing it at all. This means that it is likely to remain at least at the current level in the near future. SBI Group Chief Economist Soumya Kanti Ghosh said it is necessary for the RBI to come out of the influence of the Federal Reserve and this will be clear from the April policy review. He said that the monetary policy of any country should be determined by its needs.
Focus remains on inflation: Banker
Leading bankers of the country said on Wednesday that the Reserve Bank of India’s (RBI) hike in the repo rate by 0.25 per cent was as expected. Along with this, he said that despite the decrease in the growth rate of inflation, special attention has been paid to it in the monetary review. The policy interest rate repo was expected to increase by 0.25 per cent, said AK Goel, head of Punjab National Bank and chairman of the Indian Banks’ Association. Despite the decline in retail inflation data in the recent past, the policy review calls for more control over it. State Bank of India (SBI) Chairman Dinesh Khara said that balancing monetary policy has become a difficult task for emerging economies due to the continuous strengthening of US employment data. Along with this, he said that apart from rate hike, RBI has made important announcements on many regulatory fronts. Foreign lender Standard Chartered’s India head Zareen Daruwala said the Reserve Bank’s growth forecast for the first half of the coming fiscal is above 7 per cent, which shows its confidence in the Indian economy.
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